COMPANY REGISTRATION QATAR
Qatar is a peninsular Arab country whose terrain comprises an arid desert and a long Persian (Arab) Gulf shoreline of beaches and dunes. Also on the coast is the capital, Doha, known for its futuristic skyscrapers and other ultramodern architecture inspired by ancient Islamic design, such as the limestone Museum of Islamic Art. The museum sits on the city’s Corniche waterfront promenade
In the 21st century, Qatar emerged as a significant power in the Arab world through its resource-wealth, as well as its globally expanding media group, Al Jazeera Media Network, and reportedly supporting several rebel groups financially during the Arab Spring. For its size, Qatar wields disproportionate influence in the world and has been identified as a middle power. The 2022 FIFA World Cup will be held in Qatar, making it the first Muslim and Arab country to host the event. The 2030 Asian Games will also be held in Qatar.
Qatar is one of the leading economic countries in the world. It has the highest GDP per capita. The corporate tax rate of Qatar is comparatively lower than other countries i.e.10 %. Even in some specific areas of business, the tax is free. These are some of the main reasons why most foreign investors want to set up businesses in the country.
How to Setup a Business in Qatar?
Qatar, being a booming economy in the world, welcomes foreign investors to set up companies in Qatar. The driving force behind every businessman is to cherish his dream to be a successful entrepreneur. Sound knowledge about the local business setup in Qatar and the latest economical laws of the country is a must to run a successful company anywhere.
People looking for commercial registration in Qatar should be aware of the structural options or categories of business in Qatar: a sole establishment, a sole proprietorship company, and a limited liability company (LLC Qatar). The Limited Liability Company is the most common option in which the entity must have one or more Qatari national partners whose share in the company capital must not be less than 51%.
Helpline Group provides our assistance in the formation of Limited Liability Company Qatar, a company in Qatar free Zone, and a branch of a foreign company, etc. Our broad system of Qatari business and contact can place you in touch with the perfect accomplice for your organization.
If you are an aspiring entrepreneur wishing to start a business in Qatar, we assure our assistance in getting approvals from various government departments and municipalities by following the specific requirements of the type of company you would like to launch in Qatar.
Legal Structures of the Company.
Company Formation procedures are one of the most in-demand services in Qatar thanks to the rapid development and industrialization. The process of commercial company registration is quite complex and requires the help of expert guidance. At this stage, Helpline Group remains the top choice for the clients to get their legal documents processed for foreign company formation. The Company registration process refers to the legal registration with the Trade and Commerce Department. The registration process is different depending upon the type of business entity. Some of the common business entities are:
Limited Liability Company Formation in Qatar
LLC Qatar (Limited Liability Company in Qatar) is the most commonly opted business entity in Qatar. It is a joint venture in which one or more Qatari persons or 100 percent Qatari-owned entities hold no less than 51% of the share capital. Such companies are allowed to operate in all sectors of the economy excluding commercial agencies and real estate.
The Foreign Investment Law contains provisions that, subject to an exemption from the Minister of Business & Trade, a branch of a foreign company can be registered in Qatar if that foreign company has a contract in Qatar performing a specific project that “facilitates the performance of a public service or utility”.
Companies enjoying such exemptions are not allowed to conduct any type of commercial activities that are not related to the specific contract for which it is registered. Foreign Companies registered under the category will be incorporated the same as W.L.L and L.L.C, but the brand equity and ownership will remain with the parent company. And the Branch office will be fully taxable unless it is granted a special exemption.
This is yet another method of registering a company in Qatar in which an agent acts as the exclusive provider of services of the foreign principal or the exclusive seller of foreign-produced goods in Qatar.
Representative Trade Offices
The Decision of the Ministry of Business and Trade No 142/2006 provides that foreign firms may open a representational office without a local partner. Though the representational office may obtain the Commercial Registration and employ staff in its own name, it only can operate as a ‘shop window’ to promote a foreign company in Qatar and introduce its products to Qatari companies.
General Partnership Company
This is one of the most basic forms of commercial agreements between two or more individuals for the purpose of commercial activities or setting up a company in Qatar.
Limited Share Partnership Company
The Limited Share Partnership Company may have at least one or more joint partners and at least four trustee shareholding partners. In this method of Company Registration or Company Formation in Qatar, the minimum share capital of the company is QR.1, 000,000.
A shareholding company or limited liability company is a company that has financial and management control over other companies by owning at least 51% of that company. The minimum requirement to set up such companies in Qatar is QR.10 million.
Public Shareholding Company
The law recognizes different variants of the public shareholding company which is also known as a joint-stock company or Qatari shareholding company including 1- Public shareholding company-open. 2- Private or closed public shareholding company.
The joint venture is a type of company setup comprised of two or more persons designed to carry out a project in Qatar. As per the law, it is an unincorporated entity without legal personality.
To undertake the business of property brokerage in Qatar, it is mandatory to acquire a special license from the Ministry of Business and Trade. Companies must list real estate brokerage as one of their activities.
The process of new company registration in Qatar is very simple and can be done very quickly.
Step One: Name Search- The very first step of company registration in Qatar for foreigners involves finding the appropriate name for the company. The name of the company should be unique and should not be already in use or registered to any existing companies in Qatar. Names that are already trademarks at the Ministry of Business and Trade, commonly known as MBT, are strictly prohibited. In order to find the correct and valid name, one has to physically visit the Commercial Registration section of the MBT. Once there, they can easily search for the proposed names and see if they are already taken or not. There are around QR 100 fees to reserve the proposed company name.
Step two: Temporary bank account- The second step of processing to register a foreign company in Qatar is to open a bank account. The foreign entity has to obtain a written letter from the Ministry o Business and Trade. The letter should be addressed to the bank in Qatar where the foreign entity will be opening a bank account. This bank account shall be made active once the entity deposits the entire capital amount needed to start the business. In other words, the initial capital of the business should be deposited in this bank account. It will take only one day and be done with no additional charges.
Step three: Articles of Association- Once the bank account is opened, the foreign entity has to get approval for Articles of Association. This approval is also received from the Ministry of Business and trade. Such articles should match the basic format given out by the MBT and it should include the following as steps of company registration Qatar: -
It takes a maximum of one day to get it done
Step four: Provision for further documents – Based on the type of business activities that the foreign company is planning to do, there may be additional requirements to documents. In such a situation, the company will have to provide provisional documents. This is mostly in the case of commercial activities where the company may need to obtain a business license for that specific business. For instance, if foreign investment is done in the Industrial sector then an Industrial Project License is required. This can be obtained from the Ministry of Energy and Industry.
Step five: Company Stamp- Another important part of registering a company in Qatar is to ensure that the foreign entity has its company stamp prepared. This can be done via any third-party manufacturing company. It is designed and made according to the foreign owners. No government body is involved in this process. The MBT will only verify if the entity has its company stamp ready or not. It does not cost more than 100 QR to make a company stamp.
Step Six: Trade License- The final step of registering a foreign company in Qatar involves applying for a trade license. Without a trade license, the company will not be able to operate legally in Qatar and it is vital to have this permit for other legal matters in the future. The application for such a license is made with the Ministry of Business and Trade. It usually takes around 1 working day to complete it and the government charges vary from 200 QR to 10,000 QR. The charges are dependent on the amount of capital invested in the business
Frequently Asked Question
What are the rules and conditions of choosing a trading name?
The trade name should be unique that is it should not match with any existing company. Moreover, the name cannot be misleading and it should not violate any public ethics.
What is the procedure for booking a trading name?
The trade name can be book through the ministry’s application (moci_qatar) or through its website
How much does it cost to book a trading name?
It cost about QR 100 to book a trading name for 6 months.
How much time did it take to register a trade license?
It just takes one day to obtain trade license (if all the document is submitted incorrect manner).